Economics

Federal Reserve Leaves Action on Climate Change to Politicians

A U.S. flag flies on top of the Marriner S. Eccles Federal Reserve building at sunrise in Washington, D.C.

Photographer: Andrew Harrer/Bloomberg

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The Federal Reserve says climate change is a pressing matter, just not for monetary policy.

“Climate change is an important issue but not principally for the Fed,” Chairman Jerome Powell told lawmakers in Washington Wednesday. He said they will “try to learn” from the work its peers are doing globally, but this was largely the responsibility of politicians.